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Enterprise Foods in £30m Buyout

28 August 2014

The group specialises in providing sales, marketing and logistics services to the bakery trade helping more than 450 craft bakers and other local suppliers of products such as milk, deli items and even speciality beer.

Enterprise Foods, a supplier of craft bakery products with operations in Manchester, has completed a £30m management buyout led by current chairman Tony Moloney and private equity investor Hattington Capital.

The group, which specialises in providing sales, marketing and logistics services to the bakery trade helping more than 450 craft bakers and other local suppliers of products such as milk, deli items and even speciality beer, delivers to 7847 delivery points across the UK every day.

The company reported sales of £54.9m for the year ended June 2013 and pre-tax profits of £2.9m.

The business currently employs 40 people across the UK and anticipates further growth and investment following the completion of the MBO.

Yorkshire Bank provided £14m of senior debt to aid the buyout as well as £3.5m to support working capital and ongoing growth.

The deal with Enterprise Foods was led by Jane Hartley, director in the corporate banking team at Yorkshire Bank in Manchester.

The Manchester team at investment bank Altium, comprising managing director Simon Lord, director Chris Hopwood and associate Mark Smith, advised shareholders of Enterprise Foods.

Mr Moloney, chief executive of Enterprise Foods, said: “This is an exciting time for Enterprise Foods. We have partnered with Hattington Capital and with the help of Yorkshire Bank have secured the investment required for our five-year growth strategy.

“The Hattington team bring significant added value to the board of Enterprise Foods because of their experience across a wide variety of industries but especially within the UK food retail industry. I am very proud of the growth the team at Enterprise have achieved over the past seven years and extremely excited about the journey ahead.”

Owen Malton, head of corporate banking at Yorkshire Bank, said: “In recent years Enterprise Foods has grown to become one of the largest businesses of its kind. Its innovative and customer-focused approach is beneficial for both sides – the producer achieves sales and exposure through a trusted partner while the buyer is able to provide a quality product for demanding customers.”

Simon Lord of Altium added: “Enterprise Foods is a pioneer in the food industry, offering a unique technology enabled business model that facilitates the daily supply of local and specialised bakery and food produce to its customers on a national scale. Hattington Capital has strong expertise in the retail sector, which will help put the company in touch with a greater number of customers across the UK.”

Legal advice for Yorkshire Bank was provided by DLA Piper in Manchester.

KPMG provided due diligence and Turner Parkinson legal.

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